Crude Oil prices crept higher on Tuesday. Geo-political tensions again haunting the market and sustaining the gains. OPEC's No 2 producer, Iraq is fighting with Kurds, who voted for independence. The Kurdish region supply 600kbpd of oil. Iraq's escalation is jeopardizing the 275,000 bpd output. On the other hand, Iran supplies will be affected in the long term, if U.S. reimposes sanctions. if One look at the demand fundamentals, Asian demand is on brighter side especially china, as it imported 9 Mbpd and accounted for 13% more crude dumped by the China.
Crude oil prices have range bound for last couple of months and reached high levels in this month after January on strong demand news. As IEA executive director, Mr.Fatih Birol rightly said that oil prices and Geo-politics are interlinked and the prices are sensitive to the news. That is getting proved on bullish pricing movements.
Crude oil price today
U.S crude oil grade, West Texas Intermediate (WTI) futures for November delivery is trading at $51.87 with no change from previous close on Nymex while International crude grade, Brent oil to be delivered in December is trading with a high of 21 cents or 0.36% at $58.02 a barrel on London based ICE futures Europe exchange at 19:20 IST. Brent is trading at a premium of $6.16 a barrel to WTI at the time of reporting.
By Srinivas Chowdary Sunkara